Zero inflation claim stuns businessmen
DOHA: The talk of zero inflation by the economic adviser to the Emir has surprised businessmen as they maintain the price levels still remain high and rentals of housing and commercial properties, though, are coming down, they nevertheless continue to be on the higher side.
Dr Ibrahim Al Ibrahim told a local Arabic daily in an interview that the rate of inflation in the country had dropped to zero percent and could, in fact, be lower.
Al Ibrahim said he rejected suggestions from an international bank that receding inflation would adversely impact the Qatari economy and lead to its contraction. “This is not true. Our economy remains growth-oriented. The growth this year will be positive.”
http://www.thepeninsulaqatar.com/Display_news.asp?section=Local_News&mon...
Only few months ago Qatar had the highest inflation rate in the GCC and now its down to "0" ?
I am surprised, why almost everything is expensive here than Dubai, while the standard of services, outlook, facilities are way behind.
In Qatar everything is artificial when it comes to the economy. It is driven by just a few hands, which pump up or simmer down the heat as they see fit ................
Thanks all for the valuable input
[img_assist|nid=50852|title=hmm|desc=|link=none|align=left|width=|height=0]
.
.
thanks, corcaoich.
post bookmarked.
.
.
Good explanation corcaoich. Thanks.
remember that the inflation rate is measured against a basket of goods and services. In Qatar rent is a major component of the basket, rental falls of 20 to 30% make a huge difference in the year to year rate of inflation. Add that the dollar/Riyal had fallen significantly against the euro and pound sterling (now rising again unfortunately) and accordingly imported goods from Europe were cheaper. Add that the lack of demand from countries more affected by the global recession has depressed many prices for basic commodities. Some items will still continue to rise in the local market as traders struggle to catch up with their past increases in costs but this pressure will decrease gradually. The economist had access to figures which I don't have but it is probably correct to say that inflation measured in a statistical methodology is very low. Only time will tell!
And inflation has nothing to do with how the costs compare to other parts of the world or the gulf. It's how they compare to the costs IN QATAR the previous month or year.
He's not the only one saying it;
A sharp decline in Qatari consumer prices in the first three months of 2009 point to a slowdown in domestic demand and could indicate the OPEC oil and gas producer has already experienced annual deflation, HSBC said.
The Qatar Statistics Authority said earlier in May a new consumer price index showed prices fell more than 9 percent in the first quarter compared with the fourth quarter, as housing costs slumped 16 percent and food prices eased.
HSBC said rebasing the data suggested annual consumer prices fell 2.4 percent in the first quarter from inflation of 13.2 percent in the fourth quarter.
See here; http://www.qatarliving.com/node/508065
Looks like the Emir needs a new economic advisor. If he
really thinks there is 0% inflation he is either receiving poor information or too many trips to Yemen chewing qat. The business men are correct. The reality on the ground is costs are still relaitively enormous to many other parts of the world and even the gulf for that matter. Real estate and rentals still is unrealistic prices. Good Luck.
.
.
ciggyes = 7
Red Bull = 7
.
.
zero percent and bebsi is 2 riyals?!
Tcom - yes it can.. when it falls negative its called deflation. India went down to 0.2, and were forecasted to go negative, but it didnt.
______________________________________________
- Listen to Many...Speak to a Few -
.
.
In fact, now we have a beautiful deflation in my country.
Prices go down for many goods, but it isn't because of increased supply of a good, but because of decreased demand.
With another words....the shops are full with goods but the pockets are empty...:(
Like here???!!!!
.
.
In my opinion if inflation is negative then it's deflation :)
And if deflation is negative then it's inflation :)
.
.
In my opinion, deflation occurs when negative inflation persists for a LONG period of time.
5 months isn't a long time..:)
I remember, in my country about "negative inflation".
It was a technical reason (the reduction of VAT from 22% to 18%)
.
.
I believe the UK and US are both currently in negative inflation (i.e. deflation).
Thanks for the information
But is it possible in this age?
[img_assist|nid=50852|title=hmm|desc=|link=none|align=left|width=|height=0]
Of course you can have zero inflation, just like you can have negative inflation.
.
.
Last year, Qatar begun distancing himself from the dollar which provoked a rush of investment into local currencies. Also Qatar cut his deposit facility and one-week deposit rates to 2% respectively.
Inflation has risen to 10% in Saudi Arabia and Qatar’s consumer prices rose 14% in the fourth-quarter of 2008.
..and now, after only 5 months, "Zero%"?
Hmmmm!!!
.
.
he forgot to add NON ZERO digits with his ZERO figure
.
hahahahaha
have zero inflation if the price of goods and services remained exactly the same, however you would probably not call it inflation, maybe you would call it stablisation!
yeah before car washing in 15QR now 25QR... and zero inflation..
I dont think any country in the world can have Zero % inflation?
Can some of our guys shed more light on this
[img_assist|nid=50852|title=hmm|desc=|link=none|align=left|width=|height=0]